Tesla Motors Inc. (NASDAQ:TSLA) is into fast electric vehicles (EVs) and related technology and resources. Could that be an indication that the Palo Alto-based automaker may be willing to electrify every single mode of transportation conceivable?
Being a pure-play electric automaker, Tesla could want that, but venturing into diversified product offerings is a complex business decision. That is precisely why Bidness Etc believes an electric motorcycle from Tesla is not on the menu for Tesla fanatics any time soon, despite the rumors circulating around.
Rumors about a “Model M” from Tesla heated up when a recent blog post from a British designer on his website displayed an imaginary Tesla electric motorcycle through some neat concept art. But here we discuss why it’s just that – concept art, and not anything more.
Tesla’s unit volumes have consistently shown strong year-over-year growth, and with catalysts like new products and development of an in-house battery plant, everything points to Tesla maintaining a strong top-line. However, the company still operates in a small niche market.
Alternate fuel vehicles, including plug-in vehicles and traditional hybrid vehicles, represented a minuscule fraction of the overall auto sales in the US and worldwide last year. Moreover, with gasoline prices sitting near record lows, several analysts believe renewed interest of car shoppers in larger gas-guzzling vehicles should effectively cap the growth of alternate fuel vehicles.
Notably, the electric motorcycle market is an even tinier niche. Motorcycle sales totaled less than half a million last year in the US, while total auto sales hit 16.5 million in the country. Of this miniscule fraction, electric motorcycles make up an almost negligible segment, with the only prominent electric motorcycle maker in the country being Zero Motorcycles Inc.
Furthermore, Tesla’s battery technology, which involves larger cylindrical cells stacked vertically in a pack, takes up far more space than would be available in a motorcycle. The prevalent standards in the market for electric motorcycles call for “pouch-based” cells such as the ones used by Zero Electric Motorcycles, which utilize space more efficiently and pack more energy density than would be possible under Tesla’s technology.
Hence, we believe a Tesla “Model M” may not be in Tesla’s product pipeline any time soon.
Will Tesla Motors Inc Really Ever Make An Electric “Model M” Motorcycle?